GUANGZHOU, China -- Real estate giant China Vanke indicated Monday that a nearly six-month suspension in trading of its Shenzhen-listed A-shares is unlikely to end Saturday as planned, owing to delays in submitting a proposal to counter a hostile takeover attempt.
A plan expected as early as this week would bring in Shenzhen Metro Group as a white knight. Vanke would issue new shares to the state-owned subway operator as part of an asset reorganization totaling 40 billion yuan to 60 billion yuan ($6.07 billion to $9.1 billion).
Trading of Vanke's A-shares is seen resuming by early July after the proposal is submitted to and reviewed by the Shenzhen bourse, Chinese media report.
Conglomerate Shenzhen Baoneng Investment Group mounted a bid for Vanke last December. The developer had trading of its A-shares suspended Dec. 18. The halt remains in place despite early assurances from Vanke that it would come out with a counterproposal and have trading resume quickly.